Fast-moving consumer goods’ (FMCG) companies are designed for efficient operations, focusing on selling their products quickly to consumers, and at low cost. Efficient operations are necessary because profit-per-item for FMCGs tends to be small. Agile, cost-effective FMCG performance frequently requires selling products in large quantities to generate acceptable revenue.
Performance Appraisal
To be effective, an organization must have the right people in the right jobs; efficient, profitable operations require equally reliable job-specific performance from employees, to meet corporate objectives. Performance appraisal
evaluates employees’ ability to meet their job-specific obligations.
- Connection between job and employee – A primary objective of performance appraisal is improving the match between workers and their jobs; the overall quality of this match influences both worker and company performance. Do these factors influence worker motivation?
- Worker motivation – Compare each worker’s performance scores with the firm’s guidelines for good performance for that job. Measuring employee production suggests the worker’s level of job-understanding and her/his desire to meet or exceed operating standards. Do current standards accurately reflect job-specific requirements?
- Timely production – Each job has a specified production schedule the worker is responsible for meeting regularly. Timely production also entails maintaining product quality, another factor of assessment. Does this worker sacrifice product quality or job safety to meet production schedules?
- Job safety – Where worker performance jeopardizes job safety, the company is liable for a range of negative developments, including lawsuits or production shutdown stemming from injury, or late delivery to customers. How important is job safety in the company’s performance evaluation scale?
- Worker strengths/weaknesses – You’ll want to determine where each worker stands in relation to basic job requirements like motivation, production, scheduling, and safety. If performance lacks in any area, or several of them, will this worker benefit from training?